The impact of financialisation on the wage share: a theoretical clarification and empirical test
"It is frequently asserted that financialisation has contributed to the decline in the wage share. This paper provides a theoretical clarification and a systematic empirical investigation. We identify four channels through which financialisation can affect the wage share: (1) enhanced exit opti...
| Main Authors: | , , , |
|---|---|
| Institution: | ETUI-European Trade Union Institute |
| Format: | TEXT |
| Language: | English |
| Published: |
Durham
2018
PKSG |
| Subjects: | |
| Online Access: | https://www.labourline.org/KENTIKA-19301228124911294009-The-impact-of-financialisation.htm |
| _version_ | 1771659898970439682 |
|---|---|
| author | Post-Keynesian Economics Study Group Köhler, Karsten Guschanski, Alexander Stockhammer, Engelbert |
| author_facet | Post-Keynesian Economics Study Group Köhler, Karsten Guschanski, Alexander Stockhammer, Engelbert |
| collection | Library items |
| description | "It is frequently asserted that financialisation has contributed to the decline in the wage share. This paper provides a theoretical clarification and a systematic empirical investigation. We identify four channels through which financialisation can affect the wage share: (1) enhanced exit options of firms; (2) rising price mark-ups due to financial overhead costs for businesses; (3) increased competition on capital markets and shareholder value orientation; and (4) the role of household debt in increasing workers’ financial vulnerability and undermining their class consciousness. The paper compiles a comprehensive set of empirical measures of financialisation and uses it to test these hypotheses with a panel regression of 14 OECD countries over the 1992-2014 period. We find strong evidence for negative effects of financial liberalisation and financial payments of non-financial corporations on the wage share that are in the same order of magnitude as the effects of globalisation." |
| format | TEXT |
| geographic | OECD countries |
| id | 19301228124911294009_01dadb5a2c884cf8b8d764d10342fd5c |
| institution | ETUI-European Trade Union Institute |
| is_hierarchy_id | 19301228124911294009_01dadb5a2c884cf8b8d764d10342fd5c |
| is_hierarchy_title | The impact of financialisation on the wage share: a theoretical clarification and empirical test |
| language | English |
| physical | 39 p. Digital |
| publishDate | 2018 |
| publisher | Durham PKSG |
| spellingShingle | Post-Keynesian Economics Study Group Köhler, Karsten Guschanski, Alexander Stockhammer, Engelbert financialisation income distribution wages The impact of financialisation on the wage share: a theoretical clarification and empirical test |
| thumbnail | https://www.labourline.org/Image_prev.jpg?Archive=134637995281 |
| title | The impact of financialisation on the wage share: a theoretical clarification and empirical test |
| topic | financialisation income distribution wages |
| url | https://www.labourline.org/KENTIKA-19301228124911294009-The-impact-of-financialisation.htm |